The Greater Madison Area has seen consistent price growth for over a decade, and it took about 5 years to recover after prices dropped during the Great Recession, following the subprime bubble. Since the pandemic, we’ve seen prices exponentially increase year-over-year on a steeper curve than we had seen in the past. This was caused by the severe local inventory shortage paired with record high buyer demand.
We mostly saw prices continue to increase in 2023 as interest rates rose, though at a more conservative rate + paired with a longer average days on market for most listings, as interest rate increases tempered affordability.
Now that interest rates have likely peaked at over 8% and are making their way back down, it’s reasonable to suggest that prices will continue their upward trajectory, with that curve getting steeper as interest rates fall.
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